The strategically relevant components for the global and U.S. beverage industry macro-environment are market growth rate, market size, segmentation and scope of rivalry. Economic characteristics of alternative beverage segment differ from other beverage categories in several ways. The market size for alternative beverage was $40.2 billion globally and $17 billion in the United States, while the market size for other beverages was $ 1,548.3 and $28.9 billion globally. Market growth rate for alternative beverages between 2005 and 2009 was 9.8 percent while for other beverages it was 2.6 percent.
The competition in the alternative beverage market was strong. Pepsi and Coca-Cola were competing for the top spot in …show more content…
My strategic group map of energy drinks, sports drink and vitamin enhanced beverage industry is categorized by considering the scope of geographic distribution of producers and brand portfolio. Pepsi and Coca-Cola are positioned favorably since they compete internationally and have a strong brand portfolio. Hansen Natural is a dominant brand company since Monster energy drink accounts for 90 percent of its sales. The success of this company is mainly contributed by strong supply chain due to its partnership with Coca-Cola and Anheurser-Busch distributions. Rockstar Inc is also successful in this map since it has a strong distribution chain offered by Pepsi. However, Dream Water and Living Essentials are positioned poorly in this map since their distributions are only regionally located and they only offer a single brand.
Several key success factors determine the success of alternative beverage producers.